OK, that issue and whether it's allowable will be your issue with the IRS.
However, you have heard correctly that Delaware is probably the most advantageous place for formation of the non-profit. That is because of the wealth of case law and statutes that give the corporation
the benefits of such.
Non-profit doesn't mean that they don't pay it's officers and employees - so yes it can pay you for working or your time and expenses.
For example - American Red Cross or the United Way pays it's officers and employees substantially. In fact, it's an issue with how much they pay their officers.
Here, are some figures for the year 2003:
- Marsha J. Evans, President and CEO of the American Red Cross, was paid $468,599 in salary and benefits in fiscal 2003. (Source: BBB Wise Giving Alliance)
- Brian Gallagher, President and CEO of United Way, was paid $432,709 in salary and benefits in fiscal 2003. (Source: Charity Navigator)
- W. Todd Bassett, National Commander of the Salvation Army, was paid (along with his wife, who also works for the organization) $94,091 in salary and benefits in 2003 (including house and car). (Source: Fayetteville Observer)
Note that the exact amount of Mr. Bassett's compensation package is harder to come by than that of the other CEOs listed because the Salvation Army has tax-exempt status and isn't required to report such information to the IRS.
So, certainly yes, you could be paid by the non-profit company for your time and expenses.Please click on the ACCEPT button for my answer so that I receive credit for assisting you (even if you placed a deposit or have a subscription program). You may continue to ask follow-up questions after accepting. If the information is helpful, I would very much appreciate positive feedback. Bonuses are also appreciated. If you do have a follow-up question, press REPLY, NOT relist, or else I won’t receive the question.